Tetra Tech Beats on EPS and Revenue, Guides FY2027 to $1.65–$1.80

Tetra Tech earned $0.49 per share in its latest quarter, beating the analyst consensus of $0.47 by $0.02, according to Zacks. The engineering and consulting firm reported the results Wednesday, and the revenue line was the bigger surprise: $1.34 billion against expectations of $1.15 billion.

That's a 15.2% year-over-year revenue increase. A year ago, the company earned $0.45 per share in the same period. Profitability held up too: Tetra Tech posted a net margin of 8.67% (the share of revenue left after all costs) and a return on equity of 22.46% — a measure of how efficiently the firm converts shareholder capital into profit.

What does the guidance say about next year?

Management updated two forward numbers. Fiscal 2027 EPS guidance landed at $1.65 to $1.80, while first-quarter 2027 guidance came in at $0.36 to $0.38 per share. That Q1 range sits below or at the low end of consensus estimates, alongside revenue guidance of $1.0 to $1.1 billion — the one soft spot in an otherwise strong print.

The order book offers some cushion. Fiscal year-end funded backlog reached $4.67 billion, with new orders exceeding $1.6 billion — a visibility buffer for future work. Takeaway: the quarter beat, but the near-term outlook leans cautious.

How is the balance sheet and dividend picture?

Tetra Tech carries a current ratio of 1.18 and a quick ratio of 1.18 (both gauge short-term liquidity; the quick ratio strips out inventory). Its debt-to-equity ratio stands at a modest 0.43.

The company declared a quarterly dividend of $0.0720 per share, payable Friday, December 11, to stockholders of record on Wednesday, December 2 — also the ex-dividend date. That annualizes to $0.29 per share, a yield of 0.7%, with a dividend payout ratio (the share of earnings paid out) of 16.57%.

Where is the stock trading?

Shares opened at $39.14 on Friday. The stock has ranged from a 1-year low of $25.81 to a high of $43.14, and now carries:

• Market cap: $10.02 billion
• P/E ratio: 23.24
• Beta: 0.86 (lower volatility than the broader market)
• 50-day moving average: $36.01
• 200-day moving average: $33.26

What are analysts saying?

The sell-side was mixed. KeyCorp raised its price target from $41.00 to $42.00 with an "overweight" rating, and Robert W. Baird lifted its target from $37.00 to $40.00 while keeping "neutral." Royal Bank of Canada cut its target from $46.00 to $44.00 but maintained "outperform." Wall Street Zen downgraded the stock from "buy" to "hold" on Saturday, October 17, and Weiss Ratings nudged its rating up from "hold (c)" to "hold (c+)" on Tuesday, October 27.

Three analysts rate Tetra Tech a Buy and two a Hold, per MarketBeat, for an average rating of "Moderate Buy" and an average price target of $40.25.

Tetra Tech, founded in 1966, provides consulting and engineering services to government and commercial clients across water, environment, infrastructure, energy and resource management — from planning and design through program and construction management.

The beat is real, the backlog is solid, and the Street's $40.25 average target sits barely above Friday's $39.14 open.